Source: Chartered Institute of Personnel and Development (CIPD) 2008
• • •
A ‘collection of phenomena’ Is labour an unfortunate cost, or a critically useful asset? Two SHRM categories (and strategies):
(Beer et al., 1984)
•Analytical model, rather than prescriptive •Takes into account different philosophies and assumptions
The Warwick model
(Hendry and Pettigrew, 1992)
(Source: Mullins 2007)
Strategic HRM
• • • • Personnel management vs. HRM Strategy and alignment Vertical and horizontal integration Elements of Strategic HRM
Holbeche, 1999
Strategy and alignment
• Unitarist (shared) vs. Pluralist (divergent) conceptions • Contingency/Best practice approaches • Planned/Emergent approaches (or evolutionary Marchington & Wilkinson 2008) – truly embedded? • Generic strategies and HRM (Schuler & Jackson)
• Use of planning • Coherent approach to design and management of personnel systems • Matching HR activities and policies to explicit business strategy • People as a strategic resource for competitive advantage
How is HRM strategic?
• • • • Integration of personnel policies HRM responsibility shifts to line managers Shift from collectivism to individualism Stress on commitment - manager as enabler
•Based on the Harvard Model
•Gives recognition of external context
•Does not assume outcomes •Does assume coherent policies give rise to superior performance
Government view cited in Reader A 2006
‘The design, implementation & maintenance of strategies to manage people for optimum business performance including the development of policies & processes to support these strategies.’
Strategic management and environmental pressures
(Fombrun, Tichy and Devanna, 1984)
The human resource cycle
(Fombrun, Tichy and Devanna, 1984)
The Harvard framework
People Management Practices Staffing Work Design Training Participation Rewards Recognition Appraisal Communication
Means of maintaining on-going competitive advantage
1. 2. What are the ideal organisational measures (structures, processes etc) then seek to improve these What are the underlying ideas and forces (culture, that impact on organisational performance) – then (positively) influence these
(Hendry and Pettigrew, 1986)
Vertical integration
Link between environmental context, business strategies and personnel and development policies.
(Marchington and Wilkinson, 1986)
(Torrington and Hall, 2008)
Horizontal integration
The degree to which different aspects of Personnel and Development are linked together.
(Marchington and Wilkinson, 1996)
Models of SHRM
• • • • • Salaman, Storey and Billsberry Fombrun, Tichy and Devanna (Michigan) Beer and Spector (Harvard) Warwick model Guest’s model
Basic HRM Components
(Salaman, Storey and Billsberry, 2006)
‘Stock’ of employees Employees ‘free will’; owned by employees
Human Capital Pool Knowledge Skill Ability
Employee Relationships & Behaviours Psychological Contracts Job Related/required Discretionary Organisational Citizenship
(Sisson, 1989)
• Realisation of ‘human capital’ and ‘high performance’ workplaces for competitive advantage
(Salaman, Storey et al, 2006)
How is HRM strategic?
External fit
(Baird and Meshoulam, 1988)
Organisational integration
(Guest and Peccei, 1994)
Degree of integration
• • • • • Separation model Fit model Dialogue model Holistic model HR driven
Internal fit
(Baird and need for practices to be guided by conscious policy choices to increase the likelihood that practices will reinforce each other and will be consistent over time.
– There are fundamental differences between people as an asset and the traditional assets of finance or technology – An understanding of fundamental differences creates a new way of thinking and working in organisations – Business strategies can only be realised through people. – Creating a strategic approach to people necessitates a strong dialogue across the organisation
(Beer and Spector, 1985)
Elements in horizontal integration
• • • • Resourcing – involvement of HR Relations – Industrial/professional Reward – setting as part of policy Development – T&D as a coherent part
Source: Reader A. 2006
The nature of human resource management (HRM)
• Gratton: the significance of human resources as the most important organisational asset: